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Transaction volumes on Bitcoin surpass PayPal, will it beat Mastercard, Visa next

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The mainstream adoption and acceptance of Bitcoin over the past couple of years has translated into good numbers. The cryptocurrency network reportedly surpassed the leading payment platform PayPal, by conducting 62% more transactions in terms of dollar value, as per a report by Blockdata.

Although this was a significant milestone to achieve, the real test for Bitcoin lies ahead, in conquering payment giants such as MasterCard and Visa. In 2021, the Bitcoin network processed about $489 billion per quarter. On the other hand, PayPal processed $302 billion per quarter, while Mastercard and Visa were significantly ahead at $1.8 trillion and $3.2 trillion per quarter, the report noted.

Source: Blockdata

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The above chart shows that a significant feat is yet to be achieved by Bitcoin to match the level of established payment providers. However, Blockdata suggests it isn’t impossible after all. In this context, the report noted,

“It’s impressive how Bitcoin, as a 12-year-old decentralized network, is 27% of the way in terms of one metric (volume processed) compared to Mastercard, a company founded in 1966.”

It also noted that their significantly different use cases should also be taken into account. Since Bitcoin is essentially a “saving technology” while the rest are “spending technologies.” In any case, the report highlighted a few factors that could help bring Bitcoin to the levels of processing on the two established payment networks.

Among them, the first was the average amount of Bitcoin sent per transaction. Albeit, the network would have to scale 260% to process an equivalent volume to the Mastercard network on a daily basis, and 540% for Visa. The report noted that rather than noting a rise in the number of BTC being transferred, the tremendous increase in price over the past year has caused a significant fall in the same.

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The price of Bitcoin itself could also contribute to expansion, however, this too would require a similar growth percentage. While Bitcoin reaching these price points such as $245k and $435k is virtually impossible to determine, the report noted that it could take place by 2026, if this year’s growth metric is considered.

The most significant, however, is the number of transactions handled by the Bitcoin network. Its base layer handled around 25 million transactions per quarter over the past year. Thus amounting to 280k transactions per day.

Contrastingly, Mastercard processed an average of 33 billion transactions per quarter over the past year, 366 million per day. Further, Visa processed an average of 53.7 billion transactions per quarter over the past year, or 597 million per day.

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This stark difference comes from the scalability issues faced by the Bitcoin blockchain, which Layer 2 solutions are aiming to solve. Carrying out transactions off-chain, the Lightning Network has already seen explosive adoption within months of release. While it is difficult to monitor traffic on this Layer, estimates have suggested that 663k transactions were carried out in September 2021 alone.

The report also suggested that the growth of the protocol’s user base to one million, which is just 1% of the total BTC users, could almost double the Bitcoin’s network’s daily throughput.

In fact, a State of a Lightning report released by Arcane has estimated that the Lightning Network would grow to 800 million users by 2030.

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Bitcoin

Mike Novogratz Expects Bitcoin to Stay Above $42,000

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Mike Novogratz says that it would be surprising to see Bitcoin below $40,000

Galaxy Digital CEO Mike Novogratz believes that the price of Bitcoin is not going to fall below $40,000.

The crypto mogul told CNBC host Joe Kernen earlier today that he would be surprised to see the biggest cryptocurrency revisiting the aforementioned price level.

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Novogratz is convinced that $42,000 will remain at the bottom of the ongoing correction.
 

I think $42,000 should hold, that should be the bottom of this move. It would surprise me if it went below $40,000.
 

Bitcoin suddenly collapsed 21% on Dec. 4, making crypto traders dust off their $20,000 charts.

The cryptocurrency managed to recover to $52,000 on Dec. 8, but it was rejected there.

At press time, Bitcoin is trading down 2.7%, slightly above the $49,000 level on cryptocurrency exchange Bitstamp.

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Novogratz claims that Bitcoin going below $40,000 would result in a significant sentiment shift, adding that such a dramatic drop would make him scratch his head.

The crypto boss remains optimistic due to the increasing number of people participating in the industry:

There’s so many more people participating on it. It’s hard for me to see if going below.

However, as reported by U.Today, growth investor Louis Navellier recently said that Bitcoin could drop to $10,000 if it were to lose the do-or-die $28,500 support level that managed to hold during a dramatic correction in summer.

After a streak of unsuccessful predictions in 2018, the hedge fund veteran made a prescient call about Bitcoin reclaiming its previous record high of $20,000 by the end of 2020.

Bitcoin is now up 73% in 2021, significantly underperforming some of the top altcoins.

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Ethereum

Top Trader Says Ethereum Looks Exceptionally Bullish, Unveils Targets for Bitcoin and Explosive Altcoin Terra

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A popular crypto analyst believes Ethereum (ETH), Bitcoin (BTC) and one altcoin are about to blast off and leave the recent market-wide slump in the dust.

The pseudonymous crypto strategist and trader Kaleo tells his 454,000 Twitter followers that ETH’s time to shine has arrived as the “king” of the layer-1 blockchain protocols.

The analyst says,

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“ETH is so bullish after the most recent flush it’s not even funny.

We’ve seen a major rotation play among the alt [Layer-1s] the past few months.

It only makes sense that the king of the L1s finally has a chance to suck liquidity from the rest of the market and have a run of its own.”

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Ethereum is about even on the day, trading for $4,346 at time of writing.

Kaleo next looks at Bitcoin and says he still believes the top crypto will reach at least $100,000 during the current cycle.

“I’ve said it before and I’ll say it again – I still expect to see Bitcoin have a parabolic move to top out at $100K+ this cycle.

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I’ll gladly start scaling out around $150K. I expect it to go higher, but I’m not concerned with nailing the top. Until then, just keep stacking.”

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Source: Kaleo/Twitter

BTC currently sits at $50,900 after having battled back from a flash-crash low around the $43,500 level on December 3rd.

Lastly, the crypto analyst lays out his price prediction for the Terra (LUNA) protocol, whose native token LUNA underpins a suite of decentralized stablecoins.

Kaleo tells his followers that Terra reaching the $100 threshold is inevitable.

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“LUNA going to $100 from here is only a matter of time.”

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Source: Kaleo/Twitter

LUNA has seen some wild price action in recent days, with the altcoin tumbling from $69.66 to $53.64 late last week before surging to $77.37 on Sunday.

The 10th-ranked crypto has since corrected but is back up 5% on the day to $70.74.

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Bitcoin

Bitcoin SV Coin Struggling Near Vital DMA lines, In Sideways Consolidation

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  • Bitcoin SV coin is trading sideways over the larger time frame, with a substantial consolidation over the past few months. 
  • The crypto asset is currently placed under the narrow range of $100 to $200 while trying to suppress its 20, 50, 100, and 200-day lines.
  • The pair of BTC/BTC is trading at 0.003027 BTC with an intraday gain of +3.21%, and the ratio of BTC/ETH is CMP at 0.03489 ETH with a minor 24-hour change of +1.91%.  
Chart of BSV/USD by Tradingview

Bitcoin SV coin at the monthly chart is trading sideways, with solid consolidation. Currently, the coin is trying to suppress its all vital moving averages of 20, 50, 100, and 200-day lines. The overall short to long-term trend is still neutral, as it is struggling near all vital moving averages. Volume activity over the chart increases and needs to grow strongly for the breakout from the sideways pattern. The breakout from the sideways pattern will create a substantial upside in upcoming trading sessions, which needs supportive volume activity to grow. The sustainability above the breakout level of $200, with supportive volume activity, will boost more upside to $240 to $270. Support on the lower side is $125 and $100, whereas resistance on the higher side is $180 and $200.

Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame

Chart of BSV/USD by Tradingview

Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame. Meanwhile, the technical parameters presently showcase substantial volatility, with good volume activity. Volume activity at the weekly chart is higher and needs to maintain above its average volume activity. BSV price is trading at $149 with an intraday drop of -1.84%, and the volume to market cap ratio is 0.2866.

relative Strength Index (CAUTION): Bitcoin SV coin RSI is heading lower, after testing the overbought zone. The coin moves lower with a substantial upsurge from the lower levels and RSI at 54. 

Moving Average Convergence Divergence (CAUTION): The daily chart projects a caution trend with a bearish crossover at the 4-hour time frame. The buyer’s signal line (green) is heading towards the seller’s line (red) for the upcoming negative crossover.  

Support levels: $125 and $100

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Resistance levels: $180 and $200.

DISCLAIMER

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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